Anadarko Petroleum Corp., Houston, has acquired the majority of Amerada Hess Corp.'s, New York, Gulf of Mexico shelf properties for approximately $260 million, before adjustments. The 26 acquired fields have estimated proved reserves of nearly 25 million BOE, 60% gas. Approximately $190 million of the purchase price was allocated to the proved reserves; the remainder was attributed to unproven potential. Current daily net production is 4,000 bbl. of oil and 57 million cu. ft. of gas. The acquisition is expected to add about 2.5 million BOE to Anadarko's estimated 2003 production. Kinder Morgan Energy Partners, Houston, and Marathon Oil Corp., Houston, plan to dissolve MKM Partners LP and a related company, MKM Holdings LLC, which have oil and gas assets in the Permian Basin of West Texas. Marathon holds an 85% interest and KMP owns a 15% interest in the MKM partnership. KMP will buy a 12.75% interest in the Sacroc unit from MKM Partners, increasing KMP's stake in the unit to 97%. Marathon will also consider selling its 42.5% interest in the Yates Field unit to KMP; the sale would likely happen by year-end. KMP currently owns a 7.5% interest in Yates. The Sacroc unit produces about 20,000 bbl. of oil per day. Marathon's current share of production from the Sacroc Field is about 2,000 BOE per day and 7,500 per day from the Yates Field. At year-end 2002, Marathon held 9 million and 177 million bbl. of net proved reserves in the Sacroc and Yates fields, respectively. American Real Estate Partners LP, Mount Kisco, N.Y., said a subsidiary has agreed to acquire certain debt and stock of National Energy Group Inc., Dallas, and a 100% interest in an entity owning the debt and stock, from entities related to Carl C. Icahn for $148 million, subject to adjustments. Following the closing, AREP will own more than 50% of National Energy Group stock and 100% of the outstanding 10.75% senior notes due 2006 in the aggregate principal amount of $148 million. National Energy Group owns NEG Operating LLC, which has 34.4 billion cu. ft. equivalent of proved reserves in Oklahoma and west Arkansas and 24.5 billion cu. ft. equivalent on the Gulf Coast. Duke Energy, Charlotte, N.C., has sold Duke Energy Hydrocarbons LLC to a private firm for approximately $83 million. DEH was a subsidiary of Duke Energy involved in E&P, primarily in the Gulf of Mexico. More details were not revealed. With this sale, Duke Energy has no remaining E&P assets except for an outstanding loan to Callon Petroleum Co., Natchez, Miss. -Rachel Otto
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